Broadening returns in 2025 and cautious optimism for 2026.
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The last quarter of 2025 proved to be a strong one for markets, supported by solid corporate earnings and further rate cuts from the Federal Reserve and the Bank of England.
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Equity market returns broadened in the year, with the UK outperforming as AI-related sentiment cooled in the US; softer-than-feared inflation and rate cuts helped returns to bond holders.
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Despite geopolitical noise, our 2026 outlook is unchanged and we remain cautiously optimistic.
The value of securities and the income from them can fall as well as rise. Past performance should not be seen as an indicator of future returns. All views expressed are those of the author and should not be considered a recommendation or solicitation to buy or sell any products or securities.
